In this chapter, we develop a theoretical model of group splits, culture shifts, and creativity in diverse groups. This model explains how the strength of informational faultlines can elicit a culture shift from a desired to an actual culture of creativity in a team, which then might differentially influence team creativity and group performance. We further argue that subgroup support and team creative efficacy may enhance the interaction of informational faultlines with a desired culture of creativity to facilitate the shift toward an actual culture of creativity. We also discuss future research directions and practical implications for stimulating creative behaviors in organizations.
As part of an effort to understand diversity’s influence on group processes and performance, some researchers have explored diversity from an information processing perspective. This perspective suggests that because individuals in heterogeneous groups have a broader range of knowledge, skills, and abilities than homogeneous groups, they will also have greater access to a variety of task-relevant information and expertise, which can enhance group decision making. This chapter summarizes the findings of empirical research from this perspective and extends the tenets of this perspective, acknowledging the limitations of the original formulation. Included in the review is research on minority and majority influence processes and the integration of expert knowledge in groups. Finally, the chapter integrates this new information processing view with work that focuses on the effect of status differences on the processing of information in diverse environments.
Peer-to-peer lending is hypothesized to help equalize economic opportunities for the world’s poor. We empirically investigate the “flat-world” hypothesis, the idea that globalization eventually leads to economic equality, using crowdfinancing data for over 660,000 loans in 220 nations and territories made between 2005 and 2013. Contrary to the flat-world hypothesis, we find that peer-to-peer lending networks are moving away from flatness. Furthermore, decreasing flatness is strongly associated with multiple variables: relatively stable patterns in the difference in the per capita GDP between borrowing and lending nations, ongoing migration flows from borrowing to lending nations worldwide, and the existence of a tie as a historic colonial. Our regression analysis also indicates a spatial preference in lending for geographically proximal borrowers. To estimate the robustness for these patterns for future changes, we construct a network of borrower and lending nations based on the observed data. Then, to perturb the network, we stochastically simulate policy and event shocks (e.g., erecting walls) or regulatory shocks (e.g., Brexit). The simulations project a drift towards rather than away from flatness. However, levels of flatness persist only for randomly distributed shocks. By contrast, loss of the top borrowing nations produces more flatness, not less, indicating how the welfare of the overall system is tied to a few distinctive and critical country–pair relationships.
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